Decision details

The Director of Resources and Deputy Chief Executive submitted a report seeking for Members to agree the draft revenue budget for 2025/26, for consideration at Special Policy and Finance Committee.

Members were reminded that a budget forecast was presented to the Policy and Finance Committee in September 2024. This forecast predicted a budget surplus of £307k in 2025/26 followed by budget gaps of £52k in 2026/27 and £214k in 2027/28, after allowing for the use of general fund balances.

The key updates to the September 2024 forecast were summarised as follows:

-        The New Homes Bonus Allocations will continue for one year only and the Rural Services Delivery Grant will no longer continue in 2025/26.

-        Revenue support grant (RSG) will increase in line with CPI with no negative RSG.

-        Business Rate Pools have been confirmed for 2025/26.

-        Business Rates will not be reset for next year but will be reformed thereafter.

-        A council tax referendum principle of up to 3% or £5 for district councils.

-        Ribble Valley’s Core Spending Power will remain at least the same as 2024/25 in cash terms, but this is after assuming that the band D council tax charge is increased by the maximum possible amount i.e. 3%.

When comparing the Provisional Grant Settlement to the latest budget forecast the Council are £161k worse off. This is largely due to the removal of the Rural Services Delivery Grant and the reduction in the New Homes Bonus. The Council will however benefit from the Extended Producer Responsibility (EPR) grant in 2025/26 if the indicative amount of £561k proves to be accurate.

The difference between the Proposed Original Estimate 2025/26 and Original Estimate 2024/25 was an increase of £121,370, and an increase of £144,950 after allowing for associated movements on earmarked reserves

RESOLVED THAT COMMITTEE:

Approve the revenue original estimate for 2025/26 and submit this to the Special Policy and Finance Committee.